It is a well known fact that majority of American citizens receive a handsome amount as refund each spring, but there are also people who owe money to IRS. Here are some tips exclusively for people who fall under the latter category.
1) If you receive bill from IRS demanding to make payment for late tax along with the penalty and if you are not in a position to remit the entire amount, its better to take a loan and get done with it rather than making payments in installments.
2) It is possible to make the payment using your credit card. Visit IRS.gov for whom to contact with this regard.
3) The interest rate while you pay through a loan or credit card is lower than the interest worked out by IRS as penalties.
4) The penalty owed could also be paid by cheque, electronic transfer or money order.
5) It is also possible to request to IRS for arrangement of payment in monthly installments. In order to avail this facility, all your returns must be filed and tax estimations must be up-to-date.
For more details, visit the official website of IRS.
